BM Technologies termination of First Sound merger a positive, says Northland

After BM Technologies announced on December 23 that the company and First Sound Bank have reached a mutual decision not to move forward with the previously announced merger, Northland analyst Mike Grondahl called the deal termination a positive given how the macro environment has changed since the signing of the deal, especially in terms of interest rates and regulators. Grondahl, who expects the next two to three quarters to be weaker from a revenue perspective until the new variable deposit servicing deal gets put in place, has a Market Perform rating and $7 price target on BM Technologies shares.